what is the notion of consumption smoothing mean
what is the notion of consumption smoothing
mean
Homework Answers
Consumption smoothing describe how people try to optimize their lifetime standard of living by ensuring a proper balance of spending and saving function during the different phases of their life.The notion of consumption smoothing means consumption varies less than income over a person's lifetime. In early life people tend to borrow, and in later time people tend to dissave but in their middle years they tend to save.
What is aggregate consumption? How does it predict consumption smoothing which is in fact observed in the...
What is aggregate consumption? How does it predict consumption smoothing which is in fact observed in the aggregate? Does it hold in these components of consumption?
Define cost smoothing, and describe the consequences it can have on costs. What is cost smoothing?...
Define cost smoothing, and describe the consequences it can have on costs. What is cost smoothing? A. Cost smoothing describes a costing approach that allocates indirect costs to cost objects based on the budgeted average indirect cost rates multiplied by the budgeted quantities of the cost allocation bases. B. Cost smoothing describes the method of calculating the average fixed manufacturing overhead cost of each unit produced or service performed. C. Cost smoothing describes a costing system that uses direct costs...
Consumption-Smoothing Benefits of Insurance. Amy's utility function is where C is consumption and is given by...
Consumption-Smoothing Benefits of Insurance. Amy's utility function is where C is consumption and is given by c-Income-Expenses. Amy's income is $40,000 and there is a 2% chance that she will be involved in a catastrophic accident that will cost her $30,000 of medical expenses Throughout this question, keep at least 3 digits after the decimal point in your answers. (a) What is Amy's expected utility if she doesn't have insurance? Calculate the actuarially fair premium for a full coverage insurance....
Problem 1. (Consumption smoothing) A consumer who lives for four periods have the following path of...
Problem 1. (Consumption smoothing) A consumer who lives for four periods have the following path of income y 60 0 60 0 Assume the consumer has log utility, u(a)-ing, and is infinitely patient, β-1. Also assume the interest rate is 0 so that the real rate of return is 1 b) What is the value of assets, at, of the consumer at the beginning of period 4? (c) If the consumer is not able to borrow at any point in...
Does the notion of matter waves mean that you can be in two places at once?
Does the notion of matter waves mean that you can be in two places at once?
Problem 1. (Consumption smoothing) A consumer who lives for four periods have the following path of...
Problem 1. (Consumption smoothing) A consumer who lives for four periods have the following path of income y 60 0 60 0 Assume the consumer has log utility, a ct) 0 so that the real rate of return is 1 Inq, and is infinitely patient, β-1. Also aKsune the interest rate is (a) What is the optimal consumption profile of the consumer? (b) What is the value of assets, a, of the consumer at the beginning of period 47 (c)...
The daily water consumption for an Ohio community is normally distributed with a mean consumption of...
The daily water consumption for an Ohio community is normally distributed with a mean consumption of 519,645 gallons and a standard deviation of 71,564 gallons. The community water system will experience a noticeable drop in water pressure when the daily water consumption exceeds 782,238 gallons. What is the probability of experiencing such a drop in water pressure?
Global Average Temperature Annual mean Five-year smoothing Temperature vs baseline (°C) 1 VV baseline years -0.4...
Global Average Temperature Annual mean Five-year smoothing Temperature vs baseline (°C) 1 VV baseline years -0.4 1880 1900 1920 1940 1960 1980 2000 2020 Figure 01-7-7 Global Average Temperature Annual mean Five-year smoothing Temperature vs baseline (°C) FEST -baseline years 1880 1900 1920 1940 1960 1980 2000 2020 Figure 01-7-7 Problem 4-1 A) What does the Temperature versus baseline on the y-axis describe? What does the value y = 0 mean? B) What is the difference between the red line...
The exponential smoothing model from part b, with α=0.1, yields a mean squared error of 14.3...
The exponential smoothing model from part b, with α=0.1, yields a mean squared error of 14.3 for this time series. If we set α equal to 0.05, the mean squared error is 15.9. If we set α equal to 0.3, the mean squared error is 10.5. Which of these three values of α (0.05, 0.1, 0.3) would be the most appropriate for predicting future weekly sales?
Compute the forecast using exponential smoothing with a smoothing constant of 0.15 and a forecast for...
Compute the forecast using exponential smoothing with a smoothing constant of 0.15 and a forecast for Week 1 of 20,000. What is the MAD? Week Miles 1 21,000 2 25,000 3 24,000 4 26,000 5 22,000 6 25,000 7 24,000 8 24,000 9 22,000 10 24,000 11 23,000 12 24,000 13 23,000 14 22,000 15 24,000
Consumption-Smoothing Benefits of Insurance. Amy's utility function is where C is consumption and is given by c-Income-Expenses. Amy's income is $40,000 and there is a 2% chance that she will be involved in a catastrophic accident that will cost her $30,000 of medical expenses Throughout this question, keep at least 3 digits after the decimal point in your answers. (a) What is Amy's expected utility if she doesn't have insurance? Calculate the actuarially fair premium for a full coverage insurance....
Problem 1. (Consumption smoothing) A consumer who lives for four periods have the following path of income y 60 0 60 0 Assume the consumer has log utility, u(a)-ing, and is infinitely patient, β-1. Also assume the interest rate is 0 so that the real rate of return is 1 b) What is the value of assets, at, of the consumer at the beginning of period 4? (c) If the consumer is not able to borrow at any point in...
Problem 1. (Consumption smoothing) A consumer who lives for four periods have the following path of income y 60 0 60 0 Assume the consumer has log utility, a ct) 0 so that the real rate of return is 1 Inq, and is infinitely patient, β-1. Also aKsune the interest rate is (a) What is the optimal consumption profile of the consumer? (b) What is the value of assets, a, of the consumer at the beginning of period 47 (c)...
Global Average Temperature Annual mean Five-year smoothing Temperature vs baseline (°C) 1 VV baseline years -0.4 1880 1900 1920 1940 1960 1980 2000 2020 Figure 01-7-7 Global Average Temperature Annual mean Five-year smoothing Temperature vs baseline (°C) FEST -baseline years 1880 1900 1920 1940 1960 1980 2000 2020 Figure 01-7-7 Problem 4-1 A) What does the Temperature versus baseline on the y-axis describe? What does the value y = 0 mean? B) What is the difference between the red line...
Most questions answered within 3 hours.
-
A student takes 97.5 ml of a 0.0287 molar KOH solution and
dilutes it to a...
asked 2 minutes ago -
12) A so-called friend has offered to loan you $1,000 for one
year. At the end...
asked 3 minutes ago -
A fair -sided die is rolled four times. What is the probability
that all four rolls...
asked 20 minutes ago -
Today is January 1, 2009. The state of Iowa has offered your
firm a subsidized loan....
asked 9 minutes ago -
True or false: The Pearson's correlation coefficient of +0.4
shows a stronger linear association than a...
asked 23 minutes ago -
A long, nonconducting, solid cylinder of radius 5.5 cm has a
nonuniform volume charge density ρ...
asked 27 minutes ago -
what is the molarity of an HCL solution 28.6ml of a
.175 m NaOH solution is...
asked 29 minutes ago -
Which of the following is true in long-run equilibrium
for both perfect competition and monopolistic competition?...
asked 33 minutes ago -
A
c-chart
is based on the
A.
Poisson distribution.
B.
binomial distribution.
C.
normal distribution.
D....
asked 37 minutes ago -
Composite score on the ACT and the SAT are normally distributed.
Mary scored 26 on the...
asked 43 minutes ago -
2) A board with a mass of 9 kg, which is 4 meters long, rests on...
asked 43 minutes ago -
continuous board that's located along the top edge of the roof
where the rafters connect is...
asked 43 minutes ago